The Brazilian National Telecommunications Agency, Anatel, has approved a significant expansion for Starlink. This decision authorizes the company to launch an additional 7,500 satellites, enhancing its current network of 4,408 satellites that was granted in 2022. With this latest approval, Starlink aims to significantly strengthen its satellite internet services across Brazil.
The unanimous decision by Anatel’s council, however, was accompanied by a regulatory alert. This alert emphasizes the need for updates in Brazil’s telecom framework, calling for greater coherence and transparency in administrative deliberations. Councillor Alexandre Freire noted, “this case has made clear to me the limitations of the current regulations to offer adequate responses to the complex issues that emerge in this scenario.”
Starlink’s business activities in Brazil are intertwined with Elon Musk’s broader business interests, notably his ownership of X, formerly Twitter. In a controversial episode in August 2024, Brazil’s Supreme Court ordered the suspension of X over its refusal to comply with legal demands. Subsequently, authorities froze Starlink’s assets, highlighting an uneasy relationship with Brazilian institutions. Despite the challenges, Starlink complied, allowing the continuation of its services.
Additionally, recent developments concerning tariffs on U.S. imports, such as the 104% tariff on Chinese goods, could impact the satellite industry. These tariffs might lead to increased costs for electronic components vital for satellite manufacturing. As a result, production expenses and service affordability for companies like SpaceX could be significantly affected.
Globally, several regions have reconsidered contracts with Starlink. The Canadian province of Ontario canceled a $68 million contract, stressing its position against entities perceived as harming the economy. Meanwhile, Italian negotiations on a $1.63 billion agreement faced hurdles amid geopolitical tensions, particularly concerning Starlink’s involvement in Ukraine.
